Hyderabad: The police here on Friday busted a counterfeit currency racket and held two persons with fake Rs 2,000 notes with a face value of Rs 3.98 lakh.

Anjani Kumar, Commissioner of Police Hyderabad (city) said, "We've arrested two people involved in an inter-state fake currency racket. Fake currency notes of Rs 3.98 Lakh and a two-wheeler have been seized from them."

The duo accused have been identified as Mohd Ghouse alias Bomb Ghouse, 48, who has been on the police records since 1991, and Rabiul Shekh, 22, a resident of Malda district in West Bengal. Ghouse and Rabiul Sekh were trying to exchange FICN in Hashamabad area under Chandrayanagutta PS limits, they were apprehended by South Zone Task Force and Chandrayangutta Police on Friday.

Ghouse has been circulating fake notes since 2011. The police have arrested him 12 times since. His last arrest was by the Charminar police in 2016. While in Jail, he facilitated circulation of fake currency through a man named Ameenul Rehman.

He was released on bail on 12 January 2019. Immediately after his release from Jail, Ghouse again planned to start his business of circulating fake currency. As he had lost contact with Ameenul Rehman (main supplier of fake currency), he went to Rajahmundry Central Jail on 19 January 2019 and met with a Suraj Shaik, co-accused in the fake currency racket case and accessed Ameenul Rehman's number.